Using a key management service (KMS) that supports automatic key rotation is the most efficient and secure strategy for ensuring encryption key rotation for dynamic datasets in a lakehouse environment. This approach ensures that encryption keys are regularly rotated according to best practices without manual intervention, reducing the risk of data exposure. Additionally, it allows for seamless re-encryption of data with new keys without causing downtime, maintaining data availability and integrity. This method is scalable, efficient, and complies with industry standards and compliance requirements, making it the optimal choice for managing encryption keys in a dynamic lakehouse setting.